Correlation Between Franklin New and Icon Bond
Can any of the company-specific risk be diversified away by investing in both Franklin New and Icon Bond at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Franklin New and Icon Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin New York and Icon Bond Fund, you can compare the effects of market volatilities on Franklin New and Icon Bond and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Franklin New with a short position of Icon Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin New and Icon Bond.
Diversification Opportunities for Franklin New and Icon Bond
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Icon is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Franklin New York and Icon Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Bond Fund and Franklin New is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Franklin New York are associated (or correlated) with Icon Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Bond Fund has no effect on the direction of Franklin New i.e., Franklin New and Icon Bond go up and down completely randomly.
Pair Corralation between Franklin New and Icon Bond
Assuming the 90 days horizon Franklin New is expected to generate 1.86 times less return on investment than Icon Bond. In addition to that, Franklin New is 1.61 times more volatile than Icon Bond Fund. It trades about 0.07 of its total potential returns per unit of risk. Icon Bond Fund is currently generating about 0.2 per unit of volatility. If you would invest 771.00 in Icon Bond Fund on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Icon Bond Fund or generate 12.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin New York vs. Icon Bond Fund
Performance |
| Timeline |
| Franklin New York |
| Icon Bond Fund |
Franklin New and Icon Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin New and Icon Bond
The main advantage of trading using opposite Franklin New and Icon Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin New position performs unexpectedly, Icon Bond can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Icon Bond will offset losses from the drop in Icon Bond's long position.| Franklin New vs. Franklin Mutual Beacon | Franklin New vs. Templeton Developing Markets | Franklin New vs. Franklin Mutual Global | Franklin New vs. Franklin Mutual Global |
| Icon Bond vs. Delaware Limited Term Diversified | Icon Bond vs. Calvert Conservative Allocation | Icon Bond vs. Huber Capital Diversified | Icon Bond vs. Fidelity Advisor Diversified |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |